Source: House Representative Chris Smith (R-NJ, 4th)
Washington, D.C. - September 14, 2017 (The Ponder News) -- Rep. Chris Smith (R-NJ) is leading the charge, for a second time, to reform two federal disaster relief and recovery programs, one that discriminates against faith-based organizations and another that forces individual victims to take on new debt while boxing them out of possible federal grants. These flaws surfaced during the Superstorm Sandy recovery effort and both fixes are now gaining support as Congress prepares a larger recovery package for victims of Hurricanes Harvey and Irma.
“Superstorm Sandy taught us tough lessons—in the preparation for a storm and its aftermath, it showed us some significant flaws in our federal assistance programs,” said Smith, whose constituents in coastal areas in Monmouth and Ocean counties were hit hard by the Superstorm Sandy in 2012. “The Equity for Disaster Victims Act of 2017 (H.R. 3674) and the Federal Disaster Assistance Nonprofit Fairness Act of 2017 (H.R. 2405) address injustices in our disaster recovery programs and both bills are desperately needed,” he said.
Smith’s original bill, the Federal Disaster Assistance Nonprofit Fairness Act of 2013 (H.R. 592), passed the House of Representatives just months after Superstorm Sandy hit New Jersey in a decisive 354-72 vote. Sadly, the Senate failed to act on the legislation.
Federal Disaster Assistance Nonprofit Fairness Act of 2017
The Federal Disaster Assistance Nonprofit Fairness Act of 2017 (H.R. 2405) is bipartisan legislation that would put houses of worship on an even playing field with other private non-profit organizations seeking disaster assistance. In the last 8 years, here have been many nonprofit religious organizations, churches, synagogues and other religious centers that were completely shut out of getting federal assistance despite damage they sustained and the essential services they provide in the wake of a disaster.
“Faith-based organizations are hit just as hard as other private non-profits when natural disasters strike,” Smith said. “They don’t need or want special treatment—but to be totally excluded from recovery programs is unjust and unfair. It’s ironic that houses of worship are among the first to open their doors and serve victims of natural disasters—but also the first to be turned away from disaster assistance.
FEMA’s past discriminatory policy of excluding houses of worship from disaster relief is not prescribed by any law. The Obama Administration just refused to help them. It’s discrimination and the policy must change.”
Smith’s new bill, cosponsored by lead Democrat Rep. Grace Meng (D-NY) and a dozen bipartisan Members, stipulates that FEMA provides disaster relief assistance using criteria that are neutral with regard to religion. Any funds granted to houses of worship would be allocated in accordance with FEMA’s standard policies and procedures for other private nonprofit facilities in the wake of a natural disaster.
Last week, lawmakers were encouraged by messaging from President Trump. On September 8th, the President tweeted: “Churches in Texas should be entitled to reimbursement from FEMA Relief Funds for helping victims of Hurricane Harvey (just like others).”
The Equity for Disaster Victims Act of 2017
Smith’s second bill, The Equity for Disaster Victims Act of 2017 (H.R. 3674), would reform the federal government’s disaster relief programs to allow homeowners, small businesses and nonprofits that accepted Small Business Administration (SBA) loans following Sandy to receive federal grants for which they would otherwise be eligible except for the fact that they had accepted a federal loan. Smith’s bill would require that the grant money be used to repay the loan, thereby enabling victims to avoid further debt while allowing them to benefit from the same grants—usually run by the Department of Housing and Urban Development—that others who delayed their application later received.
“Homeowners who were encouraged—and in many cases pressured—to move quickly and apply for loans through the SBA only to learn later that such loans make them ineligible for subsequent grant programs,” Smith explained. “The current misguided rule is designed to eliminate a duplication of benefits, but instead it punishes those who follow federal advice and rewards those who procrastinate. My bill restores fairness to the equation and enables victims to qualify on equal footing for grant programs that are by nature available later in the process.”
In July of 2015, Smith testified before the House Committee on Small Business and urged SBA and HUD to provide an equitable solution. He told the committee of a New Jersey family who applied for and received an SBA home disaster loan after their homes were destroyed by Sandy.
After liquidating their retirement savings and incurring a substantial tax penalty as a result, the family applied for relief through New Jersey’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. The family was shocked to learn of their ineligibility for a grant award solely due to their acceptance of the SBA loan—a consequence that they were never informed of during the loan process. Others in a similar predicament were also denied grants.
“To qualify for the SBA loans, victims tap other assets, company pension plans, IRAs, college saving accounts—all to take on new debt so they can rebuild,” said Smith. “Allowing them access to grants to help pay back that debt helps them get back on their feet and ensures that they are not penalized for working diligently towards recovery.”
Smith noted that not only is the policy unfair, but it is not clearly explained to people desperate after a disaster. “Homeowners, from the Jersey Shore to the Gulf Coast and everywhere in between, need to know of their potential preclusion from further assistance when considering home disaster loans,” Smith said. “Post-Superstorm Sandy, these loans were the primary option offered to homeowners needing to rebuild. Those who accept home disaster loans should not be precluded from future HUD assistance just because such assistance is not yet available.”
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